This is due to the minimum wage exceeding 10,000 won next year. Under the Labor Standards Act, workers who work more than 15 hours a week are entitled to weekly holiday allowances, but the government is trying to avoid this.
The reason is that if weekly holiday allowances are paid on top of the 10,000 won minimum wage, the labor cost burden for self-employed workers will inevitably increase.
The government decided to raise the minimum wage by 1.7% from this year to 10,030 won (about 1,151 yen). The store owner, Kim, said, "I thought the minimum wage would remain the same next year. It's difficult to hire people even at the current level, so
"We are already paying more than 10,000 won (about 1,148 yen) per hour," he said, adding, "If you include weekly holiday allowances, the current hourly wage is less than 11,000 won (about 1,263 yen), but starting next year, it will be the minimum wage.
If the hourly wage is raised to 10,030 won, it will effectively be more than 12,000 won (about 1,378 yen). I am considering whether to "split employment" so that the working hours are less than 15 hours a week.
"That's why we're in a difficult situation," he said. Kim added, "In addition to labor costs, other fixed costs are also increasing," and pointed out, "If labor costs also increase, the number of good quality jobs will decrease."
Convenience stores are also expected to respond to the minimum wage hike by considering smaller hiring schedules and ceasing night-time operations.
A convenience store owner in his 30s from Hanam City, Gyeonggi Province, said,
"I'm thinking of hiring new employees and having each person work 14 hours and 30 minutes a week, but I'm really struggling with this," he said. "If the minimum wage is to be raised every year, at the very least, the weekly holiday allowance should be abolished.
Shim Sang-baek, co-chair of the National Association of Convenience Store Franchisees, said, "The problem isn't simply that next year's minimum wage will exceed 10,000 won.
The problem is that the minimum wage has risen sharply over the past five to six years," he said, criticizing the move, saying, "The increased burden of labor costs will likely lead to even more managers ceasing night-time operations."
Mr. Lee, a man in his 30s who runs internet cafes in Gangseo-gu, Seoul and Bucheon, Gyeonggi Province, said, “The current minimum wage is already high.” He added, “Internet cafes have recently been paying more for electricity and other things.
"Prices for food and everything else have gone up, and the financial burden is becoming a heavy burden," he said. "The Korean government has said it will curb inflation, but it has raised the minimum wage to the 10,000 won range," he said.
The opinions of employees are somewhat conflicting. Considering the recent high prices, the majority of employees welcome the increase in the minimum wage, but some employees
Kim, a woman in her 20s who has worked at a coffee shop in Seoul's Gangseo district for a year and six months, said, "I think the minimum wage hike will make it easier for all part-time workers to get the job done."
"This will mean that experienced workers who are able to earn more will receive the same wages," he said. "People with more experience who are able to earn more will also receive less. Rather than forcibly raising the minimum wage alone, we should be more flexible.
"I want them to have a system of ability-based pay or something like that," he said. Many in the industry have also pointed out that it is not right for self-employed people to raise the minimum wage for all employees who are directly connected to their business.
Lee Choong-hwan, chairman of the Korea Federation of Merchants, said, "Experienced employees should be paid more, but if high salaries are paid to those without experience, it will put an end to the position of business owners.
"That in itself is a loss for us," he said, adding, "The minimum wage is being raised not just this year but every year, and as a result, difficult situations for business owners continue to accumulate."
2024/07/15 07:04 KST
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